附录99.1
Ribbon Communications Inc.
报告
2024年第三季度财务结果
强劲的盈利超出预期
云端和边缘营业收入增长了11％年增长率和16％季增长率
2024年10月23日
会议通话详情：
开会讨论公司截至2024年9月30日第三季度的财务结果。
日期：2024年10月23日，星期三
时间：美东时间下午4点30分
拨入资讯：
美国/加拿大：877-407-2991
国际：201-389-0925
即时电话存取： 看涨我™
现场（仅听）网路直播:
可通过这个网站获取 投资者关系 网站上也将很快提供会议看涨后的重播。
如欲查看财务业绩详情，请浏览 investors.ribboncommunications.com.
投资者关系
+1 (978) 614-8050
ir@rbbn.com
媒体联络方式
凯萨琳·贝蒂
+1 (646) 741-1974
cberthier@rbbn.com
美国德克萨斯州普莱诺 – Ribbon Communications Inc.(纳斯达克：RBBN)，一家全球通信科技和IP光学网络解决方案供应商，为全球许多最大的服务提供商、企业和重要制造行业运营商现代化和保护网络，今天宣布了其2024年第三季度的财务业绩。
2024年第三季度的营业收入为21000万美元，较2023年第三季度的20300万美元和2024年第二季度的19300万美元有所增加。根据普通会计准则（GAAP），营业亏损为（100万美元），而非普通会计准则调整后的EBITDA（非公认会计原则调整后的盈余前税息折旧及摊销前毛利）在2024年第三季度改善至3,000万美元，占销售额的14%。普通会计准则和非普通会计准则的毛利率分别为52%和55%，表现强劲。
布鲁斯·麦克莱伦，Ribbon通信执行长兼总裁表示：“我们第三季的财务表现让我感到非常高兴，整体销售同比增长3.5%，受益于我们Cloud＆Edge安全通信业务的强劲增长。毛利率超出预期，产品销售组合良好，专业服务团队执行良好，业务盈利性在我们指引区间的高端。”
McClelland先生补充说：「我们预计这股势头将持续到第四季度，并持续到2025年，随著我们与verizon和其他多家运营商加快语音现代化计划的进展，与美国联邦国防机构签订新合同，并增长美国偏远地区宽频市场。对于第四季度，我们的预测预计在中点处的年度销售增长率将达到8％，反映了所有这些趋势以及企业业务的季节性增长。
财务亮点1
| 三个月结束 | 九个月结束了 | |||||||||||||||
| 九月三十日， | 九月三十日， | |||||||||||||||
| 单位：百万美元，除每股金额 | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| 营业收入 | $ | 210 | $ | 203 | $ | 583 | $ | 600 | ||||||||
| GAAP净利润（亏损） | $ | (13 | ) | $ | (14 | ) | $ | (61 | ) | $ | (73 | ) | ||||
| 非GAAP净利润（亏损） | $ | 8 | $ | 9 | $ | 16 | $ | 14 | ||||||||
| 非依据通用会计原则调整后的EBITDA | $ | 30 | $ | 28 | $ | 63 | $ | 48 | ||||||||
| GAAP稀释每股盈利（亏损） | $ | (0.08 | ) | $ | (0.08 | ) | $ | (0.35 | ) | $ | (0.43 | ) | ||||
| 非通用会计基准下稀释每股盈利（亏损） | $ | 0.05 | $ | 0.05 | $ | 0.09 | $ | 0.08 | ||||||||
| 基本加权平均股份待上市 | 175 | 171 | 174 | 170 | ||||||||||||
| 稀释后加权平均股份待上市 | 177 | 176 | 176 | 176 | ||||||||||||
1 请参阅非依照中通会计准则的调帐 财务指标与最直接可比较的通用会计准则指标之间的调和，以及有关非依照中通会计准则的详细资讯，请参见所附附表中标题为“讨论非中通会计财务指标”的部分。
「我非常兴奋能够在这个业务转折点加入ribbon communications，并期待将我在verizon和沃达丰的电信经验应用于生态系统的供应商端。ribbon communications 在全球许多最大和最敏感的网路中发挥著重要作用，并有一个绝佳机会大幅扩大其存在并产生股东价值，」致富金融(临时代码)约翰敦道夫说，他将于2024年11月1日起担任ribbon communications的首席财务官。
1
业务前景2
对于2024年第四季，公司预期我们两个业务将呈逐季增长，营业收入预计在23500万至25500万区间内。非GAAP毛利率预计在55.5%至56%的区间内。调整后的EBITDA预计在4600万至5200万的区间内。
公司的前景是基于目前业务的情况，而该情况可能会有所改变。
2 不提供依据通用会计原则的盈利预测。请查看将非通用会计指标与最直接可比的通用会计指标对应的对照表以及有关非通用会计指标的额外资讯，位于附表中标题为“非通用会计财务指标讨论”部分。
即将到来的会议日程安排
| § | 2024年11月19日： 18日 Needham安防、网络和通信年度会议 |
关于Ribbon
ribbon communications（纳斯达克：RBBN）提供通信软体、IP 和光纤网络解决方案给全球服务提供商、企业和关键的制造行业。我们与客户紧密合作，协助他们对其网络进行现代化改造，以提高在当今智能、全天候和数据需求旺盛的世界中的竞争地位和业务成果。我们创新的端到端解决方案组合提供无与伦比的规模、性能和灵活性，包括面向软体的核心至边缘解决方案、云原生产品、领先的安防和分析工具，以及针对5g概念和宽带互联网的IP 和光纤网络解决方案。我们对环保、社会和治理（esg）事项坚持著重，向利益相关者提供年度可持续发展报告。欲了解有关 Ribbon 的更多信息，请造访 rbbn.com.
关于前瞻性声明的重要资讯
本公告含有根据1995年美国私人证券诉讼改革法的“前瞻性陈述”，这些陈述受到多个风险和不确定性的影响。 本公告中除了包含在历史事实陈述之外的所有陈述，包括但不限于对公司2024年第四季度及以后的预期财务结果；市场份额增长；股东价值增加；未来运营计划和目标，包括成本削减；以色列和乌克兰战争的影响；顾客支出和参与以及动能；以及未来产品开发和制造计划及预期的效益等事项均为前瞻性陈述。 除上述之外，“预期”、“相信”、“可能”、“估计”、“预期”、“期望”、“打算”、“可能”、“计划”、“项目”等类似语言，无论是否定或肯定的，均旨在确定前瞻性陈述，尽管并非所有前瞻性陈述均包含这些识别词。
Forward-looking statements are based on the Company’s current expectations and assumptions regarding its business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are unknown and/or difficult to predict and that may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Such risks and uncertainties include, but are not limited to, unpredictable fluctuations in quarterly revenue and operating results; the impact of restructuring and cost-containment activities; increases in tariffs, trade restrictions or taxes on the Company’s products; supply chain disruptions resulting from component availability and/or geopolitical instabilities and disputes (including those related to the wars in Israel and Ukraine); the closure, on a temporary basis, of the Company’s offices or those of the Company’s contract manufacturer in Israel as a result of the war and the impact of military call-ups of the Company’s employees in Israel; material litigation; the impact of fluctuations in interest rates; material cybersecurity and data intrusion incidents, including any security breaches resulting in the theft, transfer, or unauthorized disclosure of customer, employee, or Company information; the Company’s ability to comply with applicable domestic and foreign information security and privacy laws, regulations and technology platform rules or other obligations related to data private and security; failure to compete successfully against telecommunications equipment and networking companies; failure to grow the Company’s customer base or generate recurring business from existing customers; credit risks; the timing of customer purchasing decisions and the Company’s recognition of revenues; macroeconomic conditions, including inflation; the ability to adapt to rapid technological and market changes; the ability to generate positive returns on the Company’s research and development; the ability to protect Company intellectual property rights and obtain necessary licenses; the ability to maintain partner, reseller, distribution and vendor support and supply relationships; the potential for defects in the Company’s products; risks related to the terms of the Company’s credit agreement; higher risks in international operations and markets; currency fluctuations; unanticipated averse changes in legal, regulatory or tax laws; future accounting pronouncements or changes in the Company’s accounting policies; and/or failure or circumvention of the Company’s controls and procedures. We therefore caution you against relying on any of these forward-looking statements.
2
These factors are not intended to be an all-encompassing list of risks and uncertainties that may affect the Company's business and results from operations. Additional information regarding these and other factors can be found in the Company's reports filed with the Securities and Exchange Commission, including, without limitation, its Form 10-K for the year ended December 31, 2023. Any forward-looking statement made by the Company in this release speaks only as of the date on which this release was first issued. The Company undertakes no obligation to update any forward-looking statement publicly or otherwise, whether as a result of new information, future developments or otherwise, except as required by law.
Discussion of Non-GAAP Financial Measures
The Company’s management uses several different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of its business, making operating decisions, planning and forecasting future periods, and determining payments under compensation programs. The Company considers the use of non-GAAP financial measures helpful in assessing the core performance of its continuing operations and when planning and forecasting future periods. The Company’s annual financial plan is prepared on a non-GAAP basis and is approved by its board of directors. In addition, budgeting and forecasting for revenue and expenses are conducted on a non-GAAP basis, and actual results on a non-GAAP basis are assessed against the annual financial plan. The Company defines continuing operations as the ongoing results of its business adjusted for certain expenses and credits, as described below. The Company believes that providing non-GAAP information to investors allows them to view the Company's financial results in the way its management views them and helps investors to better understand the Company’s core financial and operating performance and evaluate the efficacy of the methodology and information used by its management to evaluate and measure such performance.
While the Company’s management uses non-GAAP financial measures as tools to enhance its understanding of certain aspects of the Company’s financial performance, management does not consider these measures to be a substitute for, or superior to, GAAP measures. In addition, the Company’s presentations of these measures may not be comparable to similarly titled measures used by other companies. These non-GAAP financial measures should not be considered alternatives for, or in isolation from, the financial information prepared and presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures. In particular, many of the adjustments to the Company’s financial measures reflect the exclusion of items that are recurring and will be reflected in its financial results for the foreseeable future.
Stock-Based Compensation
The expense related to stock-based awards is generally not controllable in the short-term and can vary significantly based on the timing, size and nature of awards granted. The Company believes that presenting non-GAAP operating results that exclude stock-based compensation provides investors with visibility and insight into its management’s method of analysis and its core operating performance.
Amortization of Acquired Technology (including software licenses); Amortization of Acquired Intangible Assets
Amortization amounts are inconsistent in frequency and amount and are significantly impacted by the timing and size of acquisitions. Amortization of acquired technology is reported separately within Cost of revenue and Amortization of acquired intangible assets is reported separately within Operating expenses. These items are reported collectively as Amortization of acquired intangible assets in the accompanying reconciliations of non-GAAP and GAAP financial measures. The Company believes that excluding non-cash amortization of these intangible assets facilitates the comparison of its financial results to its historical operating results and to other companies in its industry as if the acquired intangible assets had been developed internally rather than acquired.
Litigation Costs
In connection with certain ongoing litigation where Ribbon is the defendant (as described in Note 26 to the Company's Consolidated Financial Statements included in its Annual Report on Form 10-K for the year ended December 31, 2023), the Company has incurred litigation costs beginning in 2023. Also, on October 14, 2024, a settlement in principle was reached on one of these legal matters and the Company accrued the $5 million settlement in the third quarter of 2024. These costs are included as a component of general and administrative expense. The Company believes that such costs are not part of its core business or ongoing operations, are unplanned, and generally are not within its control. Accordingly, the Company believes that excluding litigation costs related to these specific legal matters facilitates the comparison of the Company’s financial results to its historical operating results and to other companies in its industry.
3
Acquisition-, Disposal- and Integration-Related
The Company considers certain acquisition-, disposal- and integration-related costs to be unrelated to the organic continuing operations of the Company and its acquired businesses. Such costs are generally not relevant to assessing or estimating the long-term performance of the acquired assets. The Company excludes such acquisition-, disposal- and integration-related costs to allow more accurate comparisons of its financial results to its historical operations and the financial results of less acquisitive peer companies and allows management and investors to consider the ongoing operations of the business both with and without such expenses.
Restructuring and Related
The Company has recorded restructuring and related expense to streamline operations and reduce operating costs by closing and consolidating certain facilities and reducing its worldwide workforce. The Company believes that excluding restructuring and related expense facilitates the comparison of its financial results to its historical operating results and to other companies in its industry, as there are no future revenue streams or other benefits associated with these costs.
Preferred Stock and Warrant Liability Mark-to-Market Adjustment
The Company recorded adjustments to the fair value of its Series A Preferred Stock and Warrants to purchase shares of the Company’s common stock in Other (expense) income, net. Both of these instruments were issued in March 2023 in connection with the Company’s private placement and have been classified as liabilities and marked to market each reporting period until the Series A Preferred Stock was fully redeemed on June 25, 2024. The Warrant liability remains outstanding and will continue to be marked to market each reporting period. The Company excluded these gains and losses from the change in the fair value of these liabilities because it believes that such gains or losses were not part of its core business or ongoing operations.
Tax Effect of Non-GAAP Adjustments
The Non-GAAP income tax provision is presented based on an estimated tax rate applied against forecasted annual non-GAAP income. The Non-GAAP income tax provision assumes no available net operating losses or valuation allowances for the U.S. because of reporting significant cumulative non-GAAP income over the past several years. The Company is reporting its non-GAAP quarterly income taxes by computing an annual rate for the Company and applying that single rate (rather than multiple rates by jurisdiction) to its consolidated quarterly results. The Company expects that this methodology will provide a consistent rate throughout the year and allow investors to better understand the impact of income taxes on its results. Due to the methodology applied to its estimated annual tax rate, the Company’s estimated tax rate on non-GAAP income will differ from its GAAP tax rate and from its actual tax liabilities.
Adjusted EBITDA
The Company uses Adjusted EBITDA as a supplemental measure to review and assess its performance. The Company calculates Adjusted EBITDA by excluding from income (loss) from operations: depreciation; stock-based compensation; amortization of acquired intangible assets; certain litigation costs; acquisition-, disposal- and integration-related expense; and restructuring and related expense. In general, the Company excludes the expenses that it considers to be non-cash and/or not a part of its ongoing operations. The Company may exclude other items in the future that have those characteristics. Adjusted EBITDA is a non-GAAP financial measure that is used by the investing community for comparative and valuation purposes. The Company discloses this metric to support and facilitate dialogue with research analysts and investors. Other companies may calculate Adjusted EBITDA differently than the Company does, limiting its usefulness as a comparative measure.
4
RIBBON COMMUNICATIONS INC.
Consolidated Statements of Operations
(in thousands, except percentages and per share amounts)
(unaudited)
| Three months ended | ||||||||||||
| September 30, | June 30, | September 30, | ||||||||||
| 2024 | 2024 | 2023 | ||||||||||
| Revenue: | ||||||||||||
| Product | $ | 112,151 | $ | 99,133 | $ | 108,501 | ||||||
| Service | 98,087 | 93,487 | 94,660 | |||||||||
| Total revenue | 210,238 | 192,620 | 203,161 | |||||||||
| Cost of revenue: | ||||||||||||
| Product | 59,405 | 54,845 | 59,436 | |||||||||
| Service | 34,893 | 33,376 | 33,065 | |||||||||
| Amortization of acquired technology | 6,323 | 6,532 | 7,157 | |||||||||
| Total cost of revenue | 100,621 | 94,753 | 99,658 | |||||||||
| Gross profit | 109,617 | 97,867 | 103,503 | |||||||||
| Gross margin | 52.1 | % | 50.8 | % | 50.9 | % | ||||||
| Operating expenses: | ||||||||||||
| Research and development | 45,645 | 43,489 | 46,229 | |||||||||
| Sales and marketing | 33,060 | 32,984 | 32,795 | |||||||||
| General and administrative | 21,588 | 14,901 | 12,885 | |||||||||
| Amortization of acquired intangible assets | 6,457 | 6,508 | 7,216 | |||||||||
| Acquisition-, disposal- and integration-related | - | - | 842 | |||||||||
| Restructuring and related | 3,794 | 1,920 | 2,680 | |||||||||
| Total operating expenses | 110,544 | 99,802 | 102,647 | |||||||||
| Income (loss) from operations | (927 | ) | (1,935 | ) | 856 | |||||||
| Interest expense, net | (11,952 | ) | (3,879 | ) | (7,143 | ) | ||||||
| Other (expense) income, net | 1,056 | (9,503 | ) | (2,620 | ) | |||||||
| Income (loss) before income taxes | (11,823 | ) | (15,317 | ) | (8,907 | ) | ||||||
| Income tax benefit (provision) | (1,599 | ) | (1,499 | ) | (4,594 | ) | ||||||
| Net income (loss) | $ | (13,422 | ) | $ | (16,816 | ) | $ | (13,501 | ) | |||
| Earnings (loss) per share: | ||||||||||||
| Basic | $ | (0.08 | ) | $ | (0.10 | ) | $ | (0.08 | ) | |||
| Diluted | $ | (0.08 | ) | $ | (0.10 | ) | $ | (0.08 | ) | |||
| Weighted average shares used to compute earnings (loss) per share: | ||||||||||||
| Basic | 174,613 | 173,793 | 171,190 | |||||||||
| Diluted | 174,613 | 173,793 | 171,190 | |||||||||
5
RIBBON COMMUNICATIONS INC.
Consolidated Statements of Operations
(in thousands, except percentages and per share amounts)
(unaudited)
| Nine months ended | ||||||||
| September 30, | September 30, | |||||||
| 2024 | 2023 | |||||||
| Revenue: | ||||||||
| Product | $ | 298,894 | $ | 319,166 | ||||
| Service | 283,628 | 280,772 | ||||||
| Total revenue | 582,522 | 599,938 | ||||||
| Cost of revenue: | ||||||||
| Product | 160,044 | 189,426 | ||||||
| Service | 103,633 | 102,152 | ||||||
| Amortization of acquired technology | 19,406 | 21,985 | ||||||
| Total cost of revenue | 283,083 | 313,563 | ||||||
| Gross profit | 299,439 | 286,375 | ||||||
| Gross margin | 51.4 | % | 47.7 | % | ||||
| Operating expenses: | ||||||||
| Research and development | 134,897 | 145,309 | ||||||
| Sales and marketing | 100,760 | 102,099 | ||||||
| General and administrative | 51,680 | 41,276 | ||||||
| Amortization of acquired intangible assets | 19,671 | 21,740 | ||||||
| Acquisition-, disposal- and integration-related | - | 2,982 | ||||||
| Restructuring and related | 8,779 | 13,924 | ||||||
| Total operating expenses | 315,787 | 327,330 | ||||||
| Income (loss) from operations | (16,348 | ) | (40,955 | ) | ||||
| Interest expense, net | (21,818 | ) | (20,331 | ) | ||||
| Other (expense) income, net | (15,960 | ) | (536 | ) | ||||
| Income (loss) before income taxes | (54,126 | ) | (61,822 | ) | ||||
| Income tax benefit (provision) | (6,473 | ) | (11,463 | ) | ||||
| Net income (loss) | $ | (60,599 | ) | $ | (73,285 | ) | ||
| Earnings (loss) per share: | ||||||||
| Basic | $ | (0.35 | ) | $ | (0.43 | ) | ||
| Diluted | $ | (0.35 | ) | $ | (0.43 | ) | ||
| Weighted average shares used to compute earnings (loss) per share: | ||||||||
| Basic | 173,615 | 169,955 | ||||||
| Diluted | 173,615 | 169,955 | ||||||
6
RIBBON COMMUNICATIONS INC.
Consolidated Balance Sheets
(in thousands)
(unaudited)
| September 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 37,240 | $ | 26,494 | ||||
| Restricted cash | 2,853 | 136 | ||||||
| Accounts receivable, net | 249,183 | 268,421 | ||||||
| Inventory | 77,316 | 77,521 | ||||||
| Other current assets | 49,987 | 46,146 | ||||||
| Total current assets | 416,579 | 418,718 | ||||||
| Property and equipment, net | 48,782 | 41,820 | ||||||
| Intangible assets, net | 199,322 | 238,087 | ||||||
| Goodwill | 300,892 | 300,892 | ||||||
| Deferred income taxes | 84,472 | 69,761 | ||||||
| Operating lease right-of-use assets | 30,732 | 39,783 | ||||||
| Other assets | 33,980 | 35,092 | ||||||
| $ | 1,114,759 | $ | 1,144,153 | |||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Current portion of term debt | $ | 4,813 | $ | 35,102 | ||||
| Accounts payable | 78,939 | 85,164 | ||||||
| Accrued expenses and other | 102,942 | 91,687 | ||||||
| Operating lease liabilities | 10,644 | 15,739 | ||||||
| Deferred revenue | 95,761 | 113,381 | ||||||
| Total current liabilities | 293,099 | 341,073 | ||||||
| Long-term debt, net of current | 332,428 | 197,482 | ||||||
| Warrant liability | 5,587 | 5,295 | ||||||
| Preferred stock liability | - | 53,337 | ||||||
| Operating lease liabilities, net of current | 33,249 | 38,711 | ||||||
| Deferred revenue, net of current | 16,751 | 19,218 | ||||||
| Deferred income taxes | 5,616 | 5,616 | ||||||
| Other long-term liabilities | 32,495 | 30,658 | ||||||
| Total liabilities | 719,225 | 691,390 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity: | ||||||||
| Common stock | 17 | 17 | ||||||
| Additional paid-in capital | 1,967,952 | 1,958,909 | ||||||
| Accumulated deficit | (1,580,549 | ) | (1,519,950 | ) | ||||
| Accumulated other comprehensive income | 8,114 | 13,787 | ||||||
| Total stockholders' equity | 395,534 | 452,763 | ||||||
| $ | 1,114,759 | $ | 1,144,153 | |||||
7
RIBBON COMMUNICATIONS INC.
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
| Nine months ended | ||||||||
| September 30, | September 30, | |||||||
| 2024 | 2023 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income (loss) | $ | (60,599 | ) | $ | (73,285 | ) | ||
| Adjustments to reconcile net income (loss) to cash flows provided by (used in) operating activities: | ||||||||
| Depreciation and amortization of property and equipment | 10,131 | 10,603 | ||||||
| Amortization of intangible assets | 39,077 | 43,725 | ||||||
| Amortization of debt issuance costs and original issue discount | 4,137 | 2,517 | ||||||
| Amortization of accumulated other comprehensive gain related to interest rate swap | (8,196 | ) | (3,818 | ) | ||||
| Stock-based compensation | 12,061 | 16,914 | ||||||
| Deferred income taxes | (14,614 | ) | (3,617 | ) | ||||
| Gain on sale of swap | - | (7,301 | ) | |||||
| Change in fair value of warrant liability | 292 | (444 | ) | |||||
| Change in fair value of preferred stock liability | 8,091 | (572 | ) | |||||
| Dividends accrued on preferred stock liability | 2,743 | 2,573 | ||||||
| Payment of dividends accrued on preferred stock liability | (6,686 | ) | - | |||||
| Foreign currency exchange (gains) losses | 1,357 | 1,174 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 18,896 | 31,345 | ||||||
| Inventory | (1,630 | ) | (4,327 | ) | ||||
| Other operating assets | 9,456 | 27,785 | ||||||
| Accounts payable | (7,580 | ) | (22,276 | ) | ||||
| Accrued expenses and other long-term liabilities | 1,624 | (16,255 | ) | |||||
| Deferred revenue | (20,087 | ) | (7,793 | ) | ||||
| Net cash provided by (used in) operating activities | (11,527 | ) | (3,052 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (14,428 | ) | (6,620 | ) | ||||
| Purchases of software licenses | (462 | ) | - | |||||
| Net cash provided by (used in) investing activities | (14,890 | ) | (6,620 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Borrowings under revolving line of credit | 44,106 | 67,000 | ||||||
| Principal payments on revolving line of credit | (44,106 | ) | (57,000 | ) | ||||
| Proceeds from issuance of term debt | 342,300 | - | ||||||
| Principal payments of term debt | (236,270 | ) | (90,044 | ) | ||||
| Payment of debt issuance costs | (5,985 | ) | (1,572 | ) | ||||
| Proceeds from issuance of preferred stock and warrant liabilities | - | 53,350 | ||||||
| Payment of preferred stock liability | (56,850 | ) | - | |||||
| Proceeds from the exercise of stock options | 17 | 15 | ||||||
| Payment of tax obligations related to vested stock awards and units | (3,035 | ) | (3,912 | ) | ||||
| Net cash provided by (used in) financing activities | 40,177 | (32,163 | ) | |||||
| Effect of exchange rate changes on cash and cash equivalents | (297 | ) | (926 | ) | ||||
| Net increase (decrease) in cash and cash equivalents | 13,463 | (42,761 | ) | |||||
| Cash, cash equivalents and restricted cash, beginning of year | 26,630 | 67,262 | ||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 40,093 | $ | 24,501 | ||||
8
RIBBON COMMUNICATIONS INC.
Supplemental Information
(in thousands)
(unaudited)
The following tables provide the details of stock-based compensation included as components of other line items in the Company's Consolidated Statements of Operations and the line items in which these amounts are reported.
| Three months ended | Nine months ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| Stock-based compensation | ||||||||||||||||||||
| Cost of revenue - product | $ | 64 | $ | 64 | $ | 121 | $ | 234 | $ | 385 | ||||||||||
| Cost of revenue - service | 291 | 274 | 536 | 1,037 | 1,597 | |||||||||||||||
| Cost of revenue | 355 | 338 | 657 | 1,271 | 1,982 | |||||||||||||||
| Research and development | 745 | 616 | 1,259 | 2,429 | 3,821 | |||||||||||||||
| Sales and marketing | 1,108 | 954 | 1,402 | 3,219 | 5,673 | |||||||||||||||
| General and administrative | 1,837 | 1,586 | 1,632 | 5,142 | 5,438 | |||||||||||||||
| Operating expense | 3,690 | 3,156 | 4,293 | 10,790 | 14,932 | |||||||||||||||
| Total stock-based compensation | $ | 4,045 | $ | 3,494 | $ | 4,950 | $ | 12,061 | $ | 16,914 | ||||||||||
9
RIBBON COMMUNICATIONS INC.
Reconciliation of Non-GAAP and GAAP Financial Measures
(in thousands, except per share amounts)
(unaudited)
| Three months ended | ||||||||||||
| September 30, | June 30, | September 30, | ||||||||||
| 2024 | 2024 | 2023 | ||||||||||
| GAAP Gross margin | 52.1 | % | 50.8 | % | 50.9 | % | ||||||
| Stock-based compensation | 0.2 | % | 0.2 | % | 0.3 | % | ||||||
| Amortization of acquired technology | 3.0 | % | 3.4 | % | 3.6 | % | ||||||
| Non-GAAP Gross margin | 55.3 | % | 54.4 | % | 54.8 | % | ||||||
| GAAP Net income (loss) | $ | (13,422 | ) | $ | (16,816 | ) | $ | (13,501 | ) | |||
| Stock-based compensation | 4,045 | 3,494 | 4,950 | |||||||||
| Amortization of intangible assets | 12,780 | 13,040 | 14,373 | |||||||||
| Litigation costs | 6,896 | 1,768 | 478 | |||||||||
| Acquisition-, disposal- and integration-related | - | - | 842 | |||||||||
| Restructuring and related | 3,794 | 1,920 | 2,680 | |||||||||
| Preferred stock and warrant liability mark-to-market adjustment | (583 | ) | 8,210 | 148 | ||||||||
| Tax effect of non-GAAP adjustments | (5,024 | ) | (3,095 | ) | (615 | ) | ||||||
| Non-GAAP Net income (loss) | $ | 8,486 | $ | 8,521 | $ | 9,355 | ||||||
| GAAP Diluted earnings (loss) per share | $ | (0.08 | ) | $ | (0.10 | ) | $ | (0.08 | ) | |||
| Stock-based compensation | 0.02 | 0.02 | 0.03 | |||||||||
| Amortization of intangible assets | 0.08 | 0.08 | 0.08 | |||||||||
| Litigation costs | 0.04 | 0.01 | * | |||||||||
| Acquisition-, disposal- and integration-related | - | - | * | |||||||||
| Restructuring and related | 0.02 | 0.01 | 0.02 | |||||||||
| Preferred stock and warrant liability mark-to-market adjustment | * | 0.05 | * | |||||||||
| Tax effect of non-GAAP adjustments | (0.03 | ) | (0.02 | ) | * | |||||||
| Non-GAAP Diluted earnings (loss) per share | $ | 0.05 | $ | 0.05 | $ | 0.05 | ||||||
| Weighted average shares used to compute diluted earnings (loss) per share | ||||||||||||
| Shares used to compute GAAP diluted earnings (loss) per share | 174,613 | 173,793 | 171,190 | |||||||||
| Shares used to compute Non-GAAP diluted earnings (loss) per share | 177,028 | 176,246 | 176,298 | |||||||||
| GAAP Income (loss) from operations | $ | (927 | ) | $ | (1,935 | ) | $ | 856 | ||||
| Depreciation | 3,361 | 3,376 | 3,544 | |||||||||
| Stock-based compensation | 4,045 | 3,494 | 4,950 | |||||||||
| Amortization of intangible assets | 12,780 | 13,040 | 14,373 | |||||||||
| Litigation costs | 6,896 | 1,768 | 478 | |||||||||
| Acquisition-, disposal- and integration-related | - | - | 842 | |||||||||
| Restructuring and related | 3,794 | 1,920 | 2,680 | |||||||||
| Non-GAAP Adjusted EBITDA | $ | 29,949 | $ | 21,663 | $ | 27,723 | ||||||
* Less than $0.01 impact on earnings (loss) per share.
10
RIBBON COMMUNICATIONS INC.
Reconciliation of Non-GAAP and GAAP Financial Measures
(in thousands, except per share amounts)
(unaudited)
| Nine months ended | ||||||||
| September 30, | September 30, | |||||||
| 2024 | 2023 | |||||||
| GAAP Gross Margin | 51.4 | % | 47.7 | % | ||||
| Stock-based compensation | 0.2 | % | 0.3 | % | ||||
| Amortization of acquired technology | 3.4 | % | 3.7 | % | ||||
| Non-GAAP Gross Margin | 55.0 | % | 51.7 | % | ||||
| GAAP Net income (loss) | $ | (60,599 | ) | $ | (73,285 | ) | ||
| Stock-based compensation | 12,061 | 16,914 | ||||||
| Amortization of intangible assets | 39,077 | 43,725 | ||||||
| Litigation costs | 9,615 | 769 | ||||||
| Acquisition-, disposal- and integration-related | - | 2,982 | ||||||
| Restructuring and related | 8,779 | 13,924 | ||||||
| Preferred stock and warrant liability mark-to-market adjustment | 11,126 | 1,558 | ||||||
| Preferred stock and warrant liability issuance costs | - | 3,545 | ||||||
| Tax effect of non-GAAP adjustments | (4,148 | ) | 4,144 | |||||
| Non-GAAP Net income (loss) | $ | 15,911 | $ | 14,276 | ||||
| GAAP Diluted earnings (loss) per share | $ | (0.35 | ) | $ | (0.43 | ) | ||
| Stock-based compensation | 0.07 | 0.10 | ||||||
| Amortization of intangible assets | 0.23 | 0.26 | ||||||
| Litigation costs | 0.05 | * | ||||||
| Acquisition-, disposal- and integration-related | - | 0.02 | ||||||
| Restructuring and related | 0.05 | 0.08 | ||||||
| Preferred stock and warrant liability mark-to-market adjustment | 0.06 | 0.01 | ||||||
| Preferred stock and warrant liability issuance costs | - | 0.02 | ||||||
| Tax effect of non-GAAP adjustments | (0.02 | ) | 0.02 | |||||
| Non-GAAP Diluted earnings (loss) per share | $ | 0.09 | $ | 0.08 | ||||
| Weighted average shares used to compute diluted earnings (loss) per share | ||||||||
| Shares used to compute GAAP diluted earnings (loss) per share | 173,615 | 169,955 | ||||||
| Shares used to compute Non-GAAP diluted earnings (loss) per share | 176,416 | 175,986 | ||||||
| GAAP Income (loss) from operations | $ | (16,348 | ) | $ | (40,955 | ) | ||
| Depreciation | 10,131 | 10,603 | ||||||
| Stock-based compensation | 12,061 | 16,914 | ||||||
| Amortization of intangible assets | 39,077 | 43,725 | ||||||
| Litigation costs | 9,615 | 769 | ||||||
| Acquisition-, disposal- and integration-related | - | 2,982 | ||||||
| Restructuring and related | 8,779 | 13,924 | ||||||
| Non-GAAP Adjusted EBITDA | $ | 63,315 | $ | 47,962 | ||||
* Less than $0.01 impact on earnings (loss) per share.
11
RIBBON COMMUNICATIONS INC.
Reconciliation of Non-GAAP and GAAP Financial Measures
(in thousands)
(unaudited)
| Trailing Twelve Months | ||||||||||||
| September 30, | June 30, | September 30, | ||||||||||
| 2024 | 2024 | 2023 | ||||||||||
| GAAP Income (loss) from operations | $ | 322 | $ | 2,105 | $ | (39,690 | ) | |||||
| Depreciation | 13,633 | 13,816 | 14,210 | |||||||||
| Stock-based compensation | 16,953 | 17,858 | 22,126 | |||||||||
| Amortization of intangible assets | 52,243 | 53,836 | 58,694 | |||||||||
| Litigation costs | 10,153 | 3,735 | 769 | |||||||||
| Acquisition-, disposal- and integration-related | 1,494 | 2,336 | 4,896 | |||||||||
| Restructuring and related | 11,064 | 9,950 | 15,780 | |||||||||
| Non-GAAP Adjusted EBITDA | $ | 105,862 | $ | 103,636 | $ | 76,785 | ||||||
12
RIBBON COMMUNICATIONS INC.
Reconciliation of Non-GAAP and GAAP Financial Measures - Outlook
(unaudited)
| Three months ending | Year ending | |||||||||||||||
| December 31, 2024 | December 31, 2024 | |||||||||||||||
| Midpoint (1) | Range | Midpoint (1) | Range | |||||||||||||
| Revenue ($ millions) | $ | 245 | +/-$10M | $ | 828 | +/-$10M | ||||||||||
| Gross margin: | ||||||||||||||||
| GAAP outlook | 53.30 | % | 52.00 | % | ||||||||||||
| Stock-based compensation | 0.20 | % | 0.20 | % | ||||||||||||
| Amortization of acquired technology | 2.25 | % | 3.00 | % | ||||||||||||
| Non-GAAP outlook | 55.75 | % | +/-0.25 | % | 55.20 | % | +/-0.1 | % | ||||||||
| Adjusted EBITDA ($ millions): | ||||||||||||||||
| GAAP income (loss) from operations | $ | 26.9 | $ | 10.4 | ||||||||||||
| Depreciation | 3.5 | 13.6 | ||||||||||||||
| Stock-based compensation | 4.1 | 16.2 | ||||||||||||||
| Amortization of intangible assets | 11.8 | 50.8 | ||||||||||||||
| Litigation costs | 1.4 | 11.0 | ||||||||||||||
| Restructuring and related | 1.3 | 10.0 | ||||||||||||||
| Non-GAAP outlook | $ | 49.0 | +/-$3M | $ | 112.0 | +/-$3M | ||||||||||
(1) Q4 2024 and FY 2024 outlook represents the midpoint of the expected ranges
13